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If the individual possesses a small amount of capital, he should venture in a sole proprietorship instead of a company. Determine the probability of an individual obtaining credit or loans from external sources.

i ii

Personal assets have to be taken into account when selecting the kind of business one wants to venture in. Personal assets are liable to the creditor if losses are incurred either in a sole proprietorship or a partnership.

iii iv

Meanwhile in companies, there is a separate entity between the shareholders property and members of the boards and the company.
These assets will not be affected although the company incurs losses.

If an individual wants to have a bigger span of control and authority , sole proprietorship is the best form of ownership In a partnership, the span of control is shared among all partners. In a company, the person who is responsible for initiating the business will not necessarily be the director of the company throughout his lifetime. As such, only a sole proprietor will have full power and authority in carrying out his business.

If an individual decides not to share information with his counterparts, it is advisable for him to form a sole proprietorship.


legal condition of each form of business ownership must be considered by the entrepreneur in order for him to make the right choice. In Malaysia, there are four popular types of business ownership for an entrepreneur to choose from:

a)sole proprietorship b)partnership c)private limited company d)public limited company

1)Sole proprietorship is an active form of legal status for a new business

2)Sole proprietorship is by far the simplest business structure with minimal requirement

3)This form of business structure is solely owned and operated by one individual

4)Sole proprietorship known as a sole trader

5)Sole proprietorship can have a large number of employees

A bussiness that owned by at least two or more individuals but not exceeding the maximum of 20 persons. its formed under the Bussiness Registration Act 1956. It is also called a partner on the bussiness. The partners have contributes money, labour, or skills and each shares of the profits.

General Partnership
partners have unlimited liabilities for the of the company. it is personally liable for all obligations of the firm.


just some of partners have limited liabilities. it is liable to the extent of their contributions.


A private limited company is a company limited by shares and owned by a group of people. or more individuals but not exceeding 50 people who pool their capital and work together to form a company. The name of a private company will ends with the words sendirian berhad or private limited its owned by a group of people.


The example of private limited company

When the company end with SDN.BHD The example : Saba Sun Sdn.Bhd

When the company end with Pte.Ltd The examples : Bestari Pte.Ltd

public limited company is a company unlimited by share.

least 2 or more individual and there is no maximum limit in term of membership. the word Berhad (Bhd) or limited (ltd) after the companys name .



The example of public limited company

The company end with berhad : Example faiza berhad

The company end with limited : Example saga ltd

Thank you